China and the US Mutually Cut FDI

China is cutting its direct investment into the United States (US) as the trade war continues to drag on between the two countries. According to Rhodium Group, which was quoted from rt.com, China cut foreign direct investment (FDI) in the US by 88%.

China’s FDI to the US, which amounted to US $ 26.5 billion in 2016, shrank to US $ 5.4 billion in 2018. As for the opposite, US FDI in China also fell. It’s just not as drastic as China did to the US. FDI has shrunk from US $ 14 billion in 2017 to US $ 13 billion in 2018.

This reciprocated response indeed shows the relations between the two countries are increasingly unhealthy. The two countries no longer have trust in each other. China does not trust the US, and vice versa, the US does not trust China.

The trade war between the two countries has been sticking out since last year. Where was born the policy of taxation by the US to China. Quoted from rt.com, at that time Washington imposed a tax of 25% on Chinese technology products with a value of US $ 50 billion. Restrictions through the fiscal approach continue to be made and reciprocated. Until the heat of the trade war continues to spread until now.